Dividends and shares to flow

The gold miner has announced that it will return about $30.4 million to its shareholders in the form of a 10-cent-per-share, fully-franked special dividend, along with a distribution of shares in fellow gold company Forrestania Resources Ltd (ASX: FRS).

To give you an idea of the scope of the capital return relative to the company's size, Beacon itself was worth $257.5 million at the close of trade on Wednesday.

Beacon Minerals Managing Director Graham McGarry said regarding the return to shareholders:

Beacon has consistently focused on generating strong cash flow, maintaining a robust balance sheet and delivering value to shareholders. The Board is pleased to reward shareholders through a significant fully franked cash dividend together with the distribution of our Forrestania Resources shareholding. This dividend package reflects the strength of Beacon's operations, the benefits of our disciplined capital management strategy and our confidence in the Company's future. The in-specie distribution dividend also provides shareholders with direct exposure to Forrestania Resources while allowing Beacon to continue focusing on its core objective of growing gold production and shareholder returns.

The company has delayed the ex-dividend date for the shareholder return until Monday, 13 July, to allow option holders to exercise their options and take part. This also allows new shareholders to buy in.

Beacon was granted 36 million shares in Forrestania following a deal struck in February under which it sold a package of tenements in the Coolgardie region of Western Australia to the latter company.

Beacon was also paid $5 million as part of that deal.

ASX gold sector consolidating

Forrestania, for its part, just last week launched a takeover bid for Zenith Minerals Ltd (ASX: ZNC).

The Zenith board is recommending the bid, under which Zenith shareholders would receive one Forrestania share for every 4.3 Zenith shares held.

Zenith said the Forrestania offer followed a strategic review process it started on May 7, and the Zenith board, which owns about 4.5% of the company, was unanimously recommending the offer.

The company said:

The Zenith Board believes the Transaction represents an attractive strategic and financial outcome for Zenith shareholders, providing a premium to recent trading prices while enabling shareholders to retain exposure to the future value potential of Zenith's assets through ownership in Forrestania.

The post This ASX gold stock is rewarding shareholders with cash and shares, and it's not too late to buy in appeared first on The Motley Fool Australia.

Former Beacon Minerals Ltd (ASX: BCN) project manager Alexander McCulloch and external services provider Darryl Brian Mapleson both faced Perth Magistrates Court on Friday.

McCulloch faced 2 charges of insider trading, while Mapleson was charged with 3 counts.

According to the Australian Securities and Investments Commission (ASIC), both the accused allegedly knew of confidential results from Beacon's stage one drilling program at the Jaurdi Gold Project.

McCulloch is accused of encouraging two associates to buy up shares before the result was announced to the ASX.

Beacon had commissioned Mapleson to be its Competent Person to handle announcements to the ASX. A competent person is a person that mitigates risk for a company.

He allegedly bought up 12,792,850 shares between 19 and 24 January 2017.

The drilling result was then revealed on the ASX on 31 January, which immediately pushed the stock price up 33%.

If found guilty, the maximum penalty for their insider trading charges is 10 years imprisonment or an $810,000 penalty — or both.

Mapleson's case has been adjourned to 4 June, while McCulloch will return to court on 2 July.

Beacon shares were up 1.37% on Friday, changing hands for 3.7 cents.

The post Two men face 10 years' jail for insider trading of ASX shares appeared first on The Motley Fool Australia.